Toyota and Stellantis Exit Tesla’s EU Carbon Pool, Dealing a Blow to Tesla’s “Easy Money” Model

Tesla faces a major blow to its carbon credit revenue in the European Union. According to newly released EU documents, Toyota and Stellantis will exit Tesla’s European CO₂ emissions compliance pool for 2026—both had been the highest-paying members of the pool. Previously, the pool included eight automakers, including Leapmotor, Ford, and Honda, and was projected to generate over €1 billion in revenue for Tesla. Now, only five members remain. Toyota stated that its hybrid models are nearing compliance with EU emissions standards and that its all-electric models, such as the bZ4X, are performing well in Europe. Meanwhile, Stellantis plans to establish its own emissions pool, leveraging its partnership with Chinese EV maker Leapmotor, to offset any excess emissions. Compounding the issue, the U.S. carbon credit market was phased out in 2025. As a result, Tesla’s global carbon credit revenue is expected to decline from $2.76 billion in 2024 to approximately $2 billion in 2025, continuing a downward trend. Although automakers can still adjust their pool memberships until December, they are accelerating efforts toward independent compliance—signaling that Tesla’s era of “easy money” from carbon credits may be coming to an end.